Tezos is an open-source blockchain platform with smart contract functionality that can support Web3 dApps and utilizes a proof of stake consensus mechanism. It offers decentralized governance, energy-efficient infrastructure, and low operating costs to build scalable and flexible Web 3.0 applications.

XTZ is the native token of the Tezos blockchain and has several purposes, including paying transaction fees and securing the network via staking. It is one of the top cryptocurrencies by market cap and is an attractive digital asset to include in your crypto portfolio.

The Tezos protocol offers institutional-grade security, making it an attractive platform for building enterprise applications. It also embodies the very essence of decentralization blockchain technology is known for by empowering its community of XTZ holders with governance responsibilities.

The on-chain upgrade mechanism ensures a forkless interface, offering high levels of trust. The Tezos platform is one of the most robust in the market to develop low-cost and highly efficient decentralized applications, including in the DeFi, NFT, gaming, and digital identity (DID) space.

You can learn more about Tezos (XTZ) at our BYDFi Blog.

Arthur Breitman originally proposed the concept for Tezos in a paper in August 2014, where he argued about the failings of the Bitcoin network due to a lack of governance. He had written and published the paper under the pseudonym L. M. Goodman as a nod to Satoshi Nakamoto, the pseudonymous author of Bitcoins whitepaper.

Breitman and his wife Kathleen went on to establish a startup called Dynamic Ledger Solutions and started coding the Tezos protocol. They designed Tezos to be a platform where users could issue tokens and run smart contracts while enjoying on-chain governance.

The Tezos ICO held on 1 July 2017 helped the Tezos Foundation raise around $232 million in Bitcoin, becoming one of the market's largest initial coin offerings (ICOs). An internal dispute between the blockchain's co-founders and the Tezos Foundation president Johann Gevers caused the mainnet launch to get delayed until September 2018 after the betanet was released in June 2018.

Tezos has a total supply of 922,161,510 as of July 2022, 97.66% of which comprises the circulating supply of XTZ in the market. Over 75% of the total supply of XTZ tokens remains actively staked, while 0.96% makes up the inactive staking portion of the supply.

Tezos uses a proof of stake consensus algorithm where nodes stake XTZ tokens to participate in validating transactions and creating new blocks. For their efforts, they receive rewards in XTZ from the transaction fees charged by the network to developers, dApps, and users.

Tezos sets itself apart from several of its competitors due to its unique features, including:

Self-amendment

This feature allows the blockchain to roll out protocol upgrades without needing a fork. Unlike several blockchain ecosystems that have been disrupted due to forking, the Tezos ecosystem offers a far more stable platform due to this feature.

Decentralized Governance by the Community

Tezos aims for true decentralization by giving its community of XTZ holders voting rights on proposals. The governance allows token holders to submit and vote on proposals to upgrade the Tezos network.

More Secure Smart Contracts Through Formal Verification

Not only does Tezos support smart contracts, but it also offers improved security for them via formal verification. This method uses mathematical proof to prevent bugs in smart contracts and make dApps more resilient.

Delegation of Stake to Nodes

Users no longer need to stake XTZ to become nodes and participate in the consensus mechanism to earn rewards. The Tezos protocol lets XTZ holders delegate their stake and voting rights to other nodes, rewarding honest nodes and increasing the network's security.

Tezos (XTZ) has several use cases, including:

Native Token

XTZ is the native cryptocurrency of the Tezos blockchain. It is used to pay transaction fees when using the network to transfer data and assets. It is also used to pay for executing smart contracts on the platform.

Governance Token

The XTZ also serves as the governance token of Tezos, giving its holders the power to submit and vote on proposals for upgrading the network. The community-led governance empowers XTZ holders to delegate their voting rights to other participants within the network.

Consensus Via Staking

Users can stake XTZ on the network to become nodes and participate in Tezos's block creation process. XTZ stakers can then contribute to validate transactions and add new blocks to the blockchain, receiving rewards in the form of XTZ tokens in exchange for their efforts.

Digital Asset to Trade or HODL

As one of the top cryptocurrencies by market cap, XTZ enjoys considerable interest among crypto investors. You can buy or sell Tezos, trading it against other digital assets, or you can HODL XTZ if you believe in the long-term potential of the Tezos network. Review the latest Tezos price, XTZ market cap, and 24-hour trading volume, and perform fundamental, technical, and sentiment analyses before you trade Tezos against other cryptocurrencies.

Earn Passive Income

Not only can holding XTZ be a lucrative way to grow your crypto capital through staking but there are also many other ways to earn passive income by investing in this token. You can also lend liquidity in XTZ to BYDFi or other platforms to generate a stream of passive income risk-free and conveniently.

Head to the Crypto Lending section on BYDFi to look for the XTZ crypto. Enter the number of XTZ you wish to lend liquidity in and select the duration - seven days, 14 days, or 28 days. You will then see the daily interest rate and estimated profits you could earn.

You can stake Tezos using several digital wallets and DeFi platforms that support this function for the XTZ token. Here are the steps to stake XTZ via Temple wallet, one of the wallets running on the Tezos blockchain:

1. Becoming a node on the Tezos PoS network and validating transactions is called baking, and the nodes are called bakers. To bake blocks on the network, you need to stake a minimum of 8,000 XTZ and run your node to validate transactions.

2. You can also delegate your XTZ tokens to existing nodes or bakers within the network and sit back to earn rewards from their efforts.

3. Install the Tezos wallet Temple on your computers browser as a web extension. Supported browsers include Google Chrome, Brave, Mozilla Firefox, Microsoft Edge, Safari, Opera, Vivaldi, and Yandex Browser.

4. Set up an account on Temple if you are a new user. You can also import or restore any existing wallet on your Temple account.

5. Head to BYDFi or any other platform to buy XTZ tokens and add funds to your wallet.

6. Copy your Temple wallet address and withdraw the XTZ crypto you have bought from the exchange by entering the address here to initiate the transfer of tokens. 7. Head to the Delegation tab in your Temple wallet to delegate your XTZ tokens to existing bakers within the Tezos network.

8. Enter the number of tokens you wish to delegate to the baker you choose and click on Confirm to process the transaction.

9. Sit back and earn your XTZ rewards from staking Tezos.

While there is no official Tezos wallet, the blockchain does support several digital wallets within its ecosystem that can store XTZ. Here's how you can transfer your XTZ crypto from a Tezos wallet and into your BYDFi trading account:

1. Set up your account on BYDFi if you have not already done so. Copy your BYDFi wallet address and keep it handy.

2. Head to Temple wallet and log in to your account. Make sure you have sufficient XTZ funds in your wallet.

3. Select the Send option and enter your BYDFi trading account wallet address here.

4. Enter the number of XTZ tokens you wish to send from Temple to BYDFi.

5. Verify the transaction details and click on Confirm to transfer XTZ crypto from your Temple wallet into your trading account on BYDFi.

6. Once the XTZ crypto arrives in your BYDFi account, proceed to sell Tezos or use the Crypto Lending feature to earn passive income on the platform.